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Zip Code 32931: Rising Home Values and Ownership in Cocoa Beach, Florida's Space Coast
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Zip code 32931, located in Cocoa Beach, Florida, is a coastal area known for its beautiful beaches and proximity to Kennedy Space Center. Over the past decade, this zip code has experienced significant shifts in homeownership rates and property values, reflecting broader economic trends and local market dynamics. The homeownership rate in zip code 32931 has shown a notable upward trend, increasing from 66% in 2013 to 74% in 2022. This 8 percentage point increase indicates a growing preference for homeownership in the area. Correspondingly, average home prices have seen substantial growth, rising from $232,015 in 2010 to $489,373 in 2022, representing a remarkable 111% increase over this period.
The relationship between federal interest rates and homeownership rates in this zip code appears to follow established patterns. For instance, as interest rates remained low between 2013 and 2016 (ranging from 0.11% to 0.40%), homeownership rates fluctuated between 61% and 66%. As interest rates began to rise more significantly from 2017 to 2019 (1.00% to 2.16%), homeownership rates continued to climb, reaching 69% in 2019. This trend suggests that other factors, such as local economic conditions or housing market dynamics, may have had a stronger influence on homeownership decisions in this area than interest rates alone.
The renter population in zip code 32931 has experienced a decline, with the percentage of renters decreasing from 34% in 2013 to 26% in 2022. Despite this decline, average rent prices have shown a steady increase. In 2013, the average rent was $1,158, which rose to $1,338 by 2022, representing a 15.5% increase over nine years. This upward trend in rent prices, despite a decreasing renter population, could be attributed to factors such as improved rental property quality, increased demand for short-term vacation rentals, or overall appreciation of property values in the area.
In 2023, the average home price in zip code 32931 reached $503,535, with interest rates at 5.02%. As of 2024, the average home price has further increased to $507,760, while interest rates have risen to 5.33%. These figures indicate a continuing upward trend in both home prices and interest rates, which could impact affordability and homeownership rates in the near future.
Applying predictive models to forecast 5-year trends, we anticipate that average home prices in zip code 32931 will continue to rise, potentially reaching around $600,000 by 2029. This projection is based on the historical growth rate and current market conditions. Average rent prices are also expected to increase, potentially surpassing $1,600 per month within the next five years, driven by the area's desirability and overall property value appreciation.
In summary, zip code 32931 has demonstrated a strong trend towards increased homeownership and rising property values over the past decade. The significant growth in average home prices, coupled with the steady increase in homeownership rates, suggests a robust and desirable real estate market in this coastal Florida location. While renter percentages have decreased, rent prices have continued to climb, indicating a competitive rental market despite the shift towards homeownership. As interest rates and property values continue to rise, it will be crucial to monitor how these factors influence future homeownership trends and overall housing affordability in the area.
